2020 Rwanda Finscope

Financial
Inclusion
Rwanda
2020
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Acknowledgements
This brochure or summary report is prepared

from findings of the FinScope Rwanda Survey
conducted in 2019/20. Access to Finance
Rwanda (AFR) is grateful to the members of the
steering committee (SC) including the Ministry
of Finance and Economic Planning, National
Bank of Rwanda (BNR), National Institute of
Statistics Rwanda (NISR), Center for Economic
and Social Studies (CESS) and FinMark Trust.
The SC members formed an integral part of

the FinScope Rwanda questionnaire design and
analysis to offer valuable insight into consumer
demand behaviour. Without these institutions
and individuals’ efforts and commitments, the
project would not have seen the light.
Centre for Economic and Social Studies

CONTENTS
Key Findings 1
Objectives of the FinScope Rwanda 2020 Survey 2
Methodology 2
Socio-economic profile 2
Financial inclusion 3
Conclusions and recommendations 7
Priority areas 8
Potential use case: financial services providers (FSPs) 8
Potential use case: policymakers and regulators 8
Introduction 9
Background on the Rwanda financial services 9
FinScope Surveys 10
FinScope Rwanda 11
FinScope Rwanda 2020 11
Survey and instrument design 12
Socio-economic profile 13
Money management 18
Knowledge about financial products 18
Access to infrastructure 18
Risk and coping mechanisms 21
Financial inclusion framework 24
Levels of Financial inclusion in Rwanda 25

Drivers of banking sector 25
Drivers of other formal (non-bank) products/services 26
Drivers of informal mechanism 27
Overlaps in product usage 27
FinScope Access Strand 28
Access Strand summary 28
Transactional accounts (bank and mobile money) 35
Banking account 35
Bank product usage 35
Mobile money penetration 38
Growth in e-money to transact 38
Transactional accounts usage 38
Savings 39
Credit 41
Insurance 44
Mutuelle de Sante 45
Remittances 45
Financial health 47
Financial health indicators include 47
Landscape of access 50
Excluded population 50
Conclusions and
opportunities 52
Priority areas 53
Potential use case: financial services providers (FSPs) 53
Potential use case: policymakers and regulators 53
FinScope footprint 54
KEY FINDINGS
The ultimate aim of policies and strategies for financial inclusion is increased
access to formal financial institutions and increased uptake and usage of
formal financial products and services (i.e. those provided by regulated service
providers). The target of the Government of Rwanda is to increase the proportion
of formally served adults to 100% by 2024.
It is generally agreed that one of the core drivers to an inclusive economy is the
constant fight against poverty and the inclusion of most of the population in the
formal economy. Hence, the importance of a more financially included adult
population is vital as it gives rise to financial stability. As more funds are channelled
and flow in the formal economy, this allows for a more effective monetary stimulus
while helping reduce costs of conducting financial transactions and increase
oversight among other reasons. Given the crucial role of financial inclusion in
the national agenda, priority should be aimed at strategies that increase and
deepen financial inclusion. To do so, it is imperative that these interventions are
specifically targeted, and evidence based. It is in pursuit of this objective that the
Rwandan Government with support from the Access to Finance Rwanda (AFR)
initiated the fourth FinScope 2020 consumer survey.
The FinScope Rwanda survey is a nationally representative demand-side survey

implemented by AFR to address the need for credible financial sector information.
It provides insights to guide policymakers and regulators in terms of how to
address or respond to existing challenges, monitoring and reviewing the financial
inclusion target.
The first FinScope Rwanda Survey in 2008 was driven by a lack of credible
information to guide policy interventions and financial service providers in their
efforts to expand the reach and depth of the Rwanda financial system. The
decision to implement FinScope Rwanda 2008 was championed by the Ministry
of Finance as the overall custodian of Rwandan’s financial sector.
In pursuit of the objective of removing systemic barriers to the uptake of financial

services, the Rwandan government needed to obtain credible information on
how the landscape of access to and usage of financial services has changed
since 2008. AFR on behalf of the government commissioned follow-up surveys
in 2012 and 2016.
Similarly, FinScope Rwanda 2020 survey is expected to illustrate how many adult
Rwandans are financially included, specifically aligning the levels of inclusion to the
revised National Financial Inclusion Strategy (NFIS) and also to report any changes
since the last FinScope survey in 2016.
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Objectives of the FinScope Rwanda 2020 Survey
• Describe the levels of financial inclusion (i.e. levels of access to financial

products and services – both formal and informal)
• Describe the landscape of access (i.e. the type of products and services used
by financially included individuals)
• Identify the drivers of, and barriers to financial access
• Assess trends/changes over time (a decade financial inclusion indicator since
2008 to 2020 and 2016 – 2020 comparison)
• Stimulate evidence-based dialogue that will ultimately lead to effective public
and private sector interventions that will increase and deepen financial inclusion
• Provide credible information on new opportunities for increased
financial inclusion
• Provide information on new opportunities for increased financial inclusion
and the extent to which financial services are meeting Rwandans’ needs
FinScope Rwanda 2020 was designed to encompass a broad range of stakeholders

in a comprehensive and intensive consultative process. This process has enriched
the survey and the shared results have contributed meaningfully to members who
have a common interest in financial inclusion. The study was funded by Access to
Finance Rwanda (AFR) and implemented by FinMark Trust (FMT) and Centre for
Economic and Social Studies (CESS) with technical support of National Institute of
Statistics Rwanda (NSIR), National Bank of Rwanda (BNR), Ministry of Finance and
Economic Planning (MINECOFIN). These stakeholders including other industry
players such as NGOs and FSPs played an integral role in the design of the survey
questionnaire and provided valuable insight into consumer behaviour.
Methodology
FinScope Rwanda 2020 is representative at national, urban/rural and district

levels. The sampling frame was provided by National Institute of Statistics.
The sample was designed according to the latest Census through the listing
information conducted in the selected Enumeration Areas (EA). All households
in the selected EAs were listed. As such about 158 386 households were listed.
Within each selected EAs, sixteen households were randomly selected from
the listed households. Within the selected households, individual respondents
were randomly selected using the automated Kish Grid. A total of 12,480
interviews were conducted during September to November 2019 by Centre
for Economic and Social Studies.
Socio-economic profile
Overview: There are around 7.1 million adults (16 years and older) in Rwanda.
The Rwandan adult population is largely rural based, with 74% (5.2 million)
residing in rural areas. Around 30% of Rwandans are between the age group
of 16 - 30 years. This makes Rwanda a young nation with around 60% of the
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population younger than 31 years. About 46% of the adults in Rwanda mainly
generate an income from informal sector (including piece work, selling goods) as
well as farming activities (29%) and only about 10% are employed in the formal
sector. Approximately 800 000 adult Rwandans own businesses, recording a
200 000 growth from 2016. Around 53% of these businesses are registered.
The growth in the business owners and the formality of these businesses may
indicate the attention given to developing the micro, small and medium business
(MSMEs). It is widely acknowledged that MSMEs are significant contributors
to job creation, development and economic growth. Given the crucial role of
MSMEs in the national economy, it is in the interest to harness and optimise
on this potential by putting into place strategies to mobilise and enable MSME
growth and development through access to finance and markets.
The business owners (800 thousand) in Rwanda employ a total of 1.2 million
people (excluding the business owners themselves). As such, the sector
contributes significantly to job creation with a total of 2 million people working
in the sector inclusive of business owners. Further it contributes to poverty
alleviation as survivalist businesses play an essential role, especially as a
buffer against slipping into deeper poverty and as such reducing individual and
household vulnerability.
The results also show rapid improvements in access to basic services, such as
the number of households with access to electricity at 42% up from 26% in
2016 and access to pipped water at 54% up from 44% in 2016. Slightly more
households are within the proximity of 30 minutes and less travel distance to
schools and health care facilities. The growth in households accessible to these
amenities (health and schools) are however lagging the population growth of
the country since 2016.
Financial inclusion
In total, 93% (about 7 million adults) in Rwanda are financially included (including
both formal and informal financial products/services). Levels of financial inclusion
vary from 99% in Gasabo district to about 83% in Rusizi district. Gender gap
in financial inclusion is closing with only 8% excluded women compared to 7%
amongst male counterparts. As expected, when comparing seniors and youth,
youth within the age group of 16 – 24 years are financially excluded at 18%
points, significantly higher compared to the national average of 7% exclusion.
Formally served: About 77% (5.5 million adults) in Rwanda have/use formal
financial products/ services, including banking sector and other formal (non-
bank) financial products/services from insurance firms, mobile network
operators, etc. Again, levels vary from 99% in Gasabo district to only 56%
in Burera district. There is clear gender gap in accessing and using formal
financial services, women (74%) are lagging with 7% gap compared to male
counterparts at 81%.
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Banked: About 36% (2.6 million individuals) of adults in Rwanda are banked
or are using banking services. The proportion of adults that are banked ranges
from 80% in Gasabo district to only 8% in Ngororero district. Women lag
behind men in the usage of bank services, 34% of female adults in Rwanda
use bank services or products versus 39% of their male counterparts. Banked
population growth has increased by 1.1 million since 2016. Bank uptake and
usage seems to be driven by transactional products, as more people (around
900 000) are receiving their income through banking accounts. About 25%
(1.7 million) banked adults use digital payments, this is up from 6% or around
400,000 in 2016. Digital payments have a direct impact on the increased
usage, 68% of bank clients use their accounts on a monthly basis, and this is
up by 16 percentage points since 2016.
Mobile money: About 87% (6.2 million adults) in Rwanda have access to
a mobile phone with females (84%) having lower access compared to men
(90%). Around 3 in 5 (61%) adults use mobile money and more males (68%)
have mobile money accounts as compared to women (56%). Key barriers to
the uptake of mobile money relate to lack of product knowledge and lack of
interest in the product.
Other formal (non-bank): Almost 75% (5.3 million individuals) of adults

in Rwanda have/use other formal (non-bank) financial products/services.
The proportion of adults that have/use other formal (non-bank) financial
products/services ranges from 98% in Gasabo district to 53% in Burera.
Though the use of other formal non-bank services is high amongst both males
and females, a lesser proportion of females (71%) have access compared
to 80% males. The other formal non-bank institution usage is driven by
mobile money accounts.
Informally served: In total, about 78% of adults in Rwanda use informal

mechanisms (5.6 million individuals). Around 80% women belong to a savings
group or use informal mechanism to manage their financial needs and about
20% of adult women rely ONLY on informal financial devices compared to
12% of men counterparts. Levels of informal financial products usage vary
from 90% in Rulindo district to 59% in Kicukiro district. The informal sector
plays an important role in extending the overall levels of financial inclusion,
particularly in rural areas and among women. About 16% of adults in Rwanda
rely ONLY on informal mechanisms, declining from 21% in 2016.
Excluded: Only 7% of adults in Rwanda (0.5 million) do not use any financial
products or services (neither formal nor informal) to manage their financial lives,
i.e. they are financially excluded. Levels of exclusion vary considerably across
the country from zero% in Gasabo district to 17% in Gatsibo and Rusizi districts.
As shown here, traditionally vulnerable groups such as the poor, those residing
in remote rural areas, youth, women, and the adult (senior citizen) population
are more likely to be financially excluded.
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Savings and investments: About 86% (6 million individuals) of adults in Rwanda
save, including all forms of savings. Saving through formal institutions, grew from
49% in 2016 to 54% in 2020. Informal savings grew significantly, reducing high
number of adults saving money at home. People in Rwanda mainly save for living
expenses. Women and young youth (16-24 years) are less likely to save money
through formal financial service providers. Both women and young youth (49%
respectively) are below national formal savings of 54%.
Borrowing and credit: About 76% (5.4 million) of adults in Rwanda borrow
money, including all forms of borrowing. Slightly more females (77%) have
borrowed in the past 12 months compared to their male counterparts (76%).
Same as saving uptake, there has been an impressive increase in formal credit
consumption, however, formal credit remains low at 22%. Formal borrowings
in Rwanda are driven by borrowing from mobile money and SACCO, each with
9% penetration.
Insurance and risk mitigation: In general, the uptake of insurance is low in

Rwanda, nevertheless the uptake of insurance show a rapid growth since 2016.
About 17% of adults have insurance products, (around 1.2 million, increasing
from 0.5 million since 2016). Slightly more males (19%) are insured compared
to their female counterparts (15%). Insurance in Rwanda is driven by medical
insurance. Life insurance is also garnering traction at 23%, up from 12% in 2016.
Remittances: About 45% (3.2 million individuals) of adults in Rwanda sent

and/or received money in the past 12 months prior to FinScope Rwanda 2020
survey, including all forms of remittance channels. Slightly more people (45%)
remitted money in 2020 compared to 43% in 2016. When using gender lenses,
more males (49%) have remitted in the past compared to females (41%). The
results show that for those that remit, the most reported means of remitting is
through formal (non-bank) remittance products (93%) which is mainly driven
by mobile money.
Financial health: Individuals around developing world are striving to improve

their financial lives. They spend, save, borrow, plan and work to grow their
assets and protect their resources, in the pursuit of improved financial health.
Financial health framework is a relative new concept that seeks to assess how
well one’s daily financial systems help build resilience from shocks and create
opportunities to pursue one’s dreams. FinScope Rwanda 2020 survey embraced
this framework and thus provides a baseline of financial health indicators:
Overall, Rwandans show good signs of financial health in four of the six indicators:
that is balancing income and expenses; building and maintaining reserves;
managing existing debts and using effective range of financial tools to manage
financial lives. About 71% adults in Rwanda have strategies to balance their
income and expenses. Strategies Rwandans used include saving excess cash
and borrowing when there is an income gap. Around 63% of adults build and
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maintain reserves through saving money and investing in assets and businesses.
Amongst the credit active consumers, only 33% showed signs of credit stress
or over-indebtedness. More financially served adults (88%) have 2 or more
financial products portfolio, allowing them to use effective range of financial
tools to manage their financial lives.
The financial health indicator however shows some gaps on planning and
prioritising (time horizon for planning, types of goals, action steps towards
goals) and recovering from financial shocks indicators. The data shows that
Rwandans’ goals and aspirations revolved around improving economic well-
being whether through starting a business, improving shelter, or investment
on education. The steps or devices used towards goals do not show financial
health confidence as majority of adults use informal and non-financial
methods. Minimum usage of formal financial devises may suggest that the
available formal products do not meet consumers’ needs.
Table 1: Financial health score matrix
INDICATORS SCORE GAP/STRENGTH IMPLICATION

1 Balances 71% 23% of the 71% relied mostly Track the progress in
income and on informal credit - are they this indicator to improve
expenses financially healthy? it and to track the
changes in the state of
nation financial health
2 Builds and 63% 71% save through informal, Healthy state - to track
maintains 68% Formally served the changes in the state
reserves of nation financial health
3 Manage 33% Majority of credit active Use this tool to identify
existing consumers borrow from informal targets for tailored
debts goals sector - can informal sector be policy intervention
used to build credit record?
4 Plan and 53% Majority are meeting life goals: Improving product design
prioritize purchasing house/property/ and strategy development
land business and education; Modify product suites,
devices used are informal savings improve functionality, or
and non-financial devices adapt distribution methods
5 Recover 61% 45% did not recover from shock, Improving product design
from majority did nothing about their and strategy development
financial shocks or used non-financial devices Modify product suites,
shocks improve functionality, or
adapt distribution methods
6 Effective 88% More Rwandans have more than Monitor progress or
range of one financial product landscape set new targets looking
financial (transaction, savings, credit and at the formality of
products insurance) to acquire, move, and store the product suite
funds as well as to grow their assets
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Beyond Rwandans’ ability to meet day-to-day needs, a financially healthy nation
should be prepared for the unexpected (that is financial shock or emergency).
Of the adult population, 61% experienced financial shocks in the past 12 months
prior to the FinScope 2020 fieldwork. Of those who experienced financial
shocks, 47% mentioned serious illness of household members; 12% agricultural
crop/livestock destroyed and 10% death of a relative or household member.
From those who experienced financial shocks, only 40% used financial devices
to mitigate financial shock. Of those who responded to recovery indicator, only
44% agreed that they recovered from the financial shock.
Conclusions and recommendations
The level of financial inclusion is relatively high in Rwanda at 93%, narrowing

the gap in reaching the 2024 target of 100% financial inclusion. There is still
room to further reduce the level of those who do not have transaction accounts
(bank and/or mobile money). However, the greatest opportunity would
come from ensuring financial inclusion that goes beyond access and uptake
to measure the impact of financial inclusion and financial health in Rwanda.
The findings of the FinScope Rwanda 2020 survey indicated that the financial
landscape in Rwanda continues to change due to sector interventions. Both
banking and other formal non-bank sectors recorded significant growth
in the number of financially included population, in line to the population
growth and effort to reduce population who previously relied only on informal
financial mechanisms.
The informal sector continues to play a significant role in financial inclusion and
increasing product portfolio choices. Mobile money continues to be an enabler
for financial inclusion and it is used by both banked and unbanked population.
Priority areas
The priorities of financial inclusion in Rwanda continue to ensure that the lives
of Rwandans are improved. To this end, the following areas could be prioritised
in the financial inclusion agenda:
• Adopt Financial Inclusion 2.0 (FI2.0) and embrace a focus towards addressing
real economy needs through better financial solutions. Identify and facilitate
the implementation of the financial interventions that will improve the
resilience and sustainable livelihoods for the target groups (informal sector,
women and youth), as well as enhance the contribution to the macro-
economic indicators for the country
• Develop and expand the roadmaps that will support the implementation of the
emerging thematic areas within the financial inclusion agenda. This includes
expanding the gender and youth financial inclusion pillars within the National
Financial Inclusion Strategy (NFIS) through establishing specific interventions
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for implementation as well as the inclusion of vulnerable groups, e.g. refugees
and people living with disabilities
• Emphasise the focus on the financial health indicators, quality and impact of
the financial services and come up with specific indicators to monitor these.
The use of digital financial services and economic platforms have the potential
to unlock the opportunities and contribute positively to financial inclusion.
Potential use case: financial services providers (FSPs)
• Financial health measurement can be a tool for improving product design

and strategy development.
• Improve financial health through high-quality and consumer-centric products.
• Use research results/indicator to modify product suites, improve functionality,
or adapt distribution methods, all with the ultimate goal of better serving their
existing clients, as well as growing their customer base.
Potential use case: policymakers and regulators
• Adopt Financial Health framework and develop Rwandan’s theory of change

which will guide and implement the financial health framework, which is likely
to be of significant interest to policy-making.
• Use the financial health indicator both to gauge the financial health of
Rwandans’ population, as well as to track progress in improving it.
• Focus on thematic analysis using the framework/indicator as a tool to identify
targets for tailored policy intervention and to monitor policy effectiveness.
• Adopt the financial health framework and include it in the NFIS and nationally-
demand side representative surveys.
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INTRODUCTION
Background on the Rwanda financial services
It is widely accepted that financial inclusion plays an important role in promoting

faster, broad-based economic growth, and poverty reduction, and thus strongly
supports national level objectives. In recognizing the efforts to support financial
inclusion, the Government of Rwanda (GoR) has introduced a number of
initiatives to promote financial inclusion, including the implementation of the
National Inclusion Financial Strategy (NFIS) and in ensuring that the NFIS is a
living document that continues measuring and monitoring the identified areas
of priority or pillars.
The development of the NFIS is a continuation of endeavour by the GoR to afford

appropriate and quality financial services and product accessible to all categories
of the population as well as to the small businesses and farmers. Inclusive
and effective financial systems help mobilise savings for investment, reduces
transaction costs and increases efficiency, thereby contributing to employment
generation and growth. Financial inclusion also helps improve household welfare,
by reducing their transaction costs, enabling them to efficiently manage risks and
shocks, allocating capital for productive use and supporting the accumulation
of wealth over time.
Arising through a collaborative stakeholder review processes, the NFIS 2019

– 2024 aims to guide and assist the government and stakeholders to identify
and implement actions that best improve financial inclusion. The development
of the NFIS has been rolled out under the guidance of the government, being
jointly led by the National Bank of Rwanda (BNR) and the Ministry of Finance
and Economic Planning (MINECOFIN), with technical support from Access to
Finance Rwanda (AFR).
The strategy outlines a series of actionable policy objectives to be undertaken

by various actors - including both public and private sector institutions and
agencies - to increase access to and use of appropriate and affordable financial
services, by all adults in Rwanda to meet their needs.
The NFIS comprises the following action items:
1. Resilience and money management for household – This pillar speaks to

need for the financial services to support individuals or households to build
resilience to shocks and pursue opportunities and dreams;
2. SME access to finance for investment – Expand productive credit to benefit

small firms who would normally struggle to mobilise finances for operations,
expansion or even starting up a business;
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3. Access to finance for investment and resilience for farmers - Agriculture is
critical to Rwanda’s economy, contributing nearly a third of the national gross
domestic product (GDP), employing more than three-fourths of the workforce,
and generating more than half of the country’s export revenues1. Agriculture
finance and financial inclusion in the sector is therefore a national priority;
4. Expansion of digital finances - The broad goal envisaged by the NST 1, RNPS
and the SRMP is for a cashless society by encouraging the use of electronic
payments by all residents of Rwanda. Rwanda can be a country in which citizens
use DFS well beyond the currently prevalent person-to-person (P2P) and cash
in and out transactions, by encompassing ecosystems where citizens receive
income digitally, and spend it digitally including at merchant points, schools,
health providers and government payments, as well as eventually e-commerce;
5. Responsible finances - The financial capability is of importance in Rwanda,

its purpose being to provide consumers with the knowledge to safeguard
themselves against unfair or exploitative practices, as well as to improve
decision making regarding financial products and services that are appropriate
to their needs. Consumer protection and financial literacy (financial capability)
ensure there is trust in the financial sector, and uptake and usage of financial
services are optimised;
6. Cross cutting actions - Regular collaboration between the policy makers,

regulators and stakeholders in the sector to ensure that the overall objectives
are being achieved.
FINSCOPE SURVEYS
FinScope is a research tool which was developed by FinMark Trust2 to address

the need for credible financial sector information. It provides insights to
guide policy makers and regulators in terms of how to address or respond to
some of the challenges they face in order to meet financial inclusion targets.
It also provides financial service providers with crucial strategic information

regarding their target markets and the financial services these markets need
1 Agriculture Finance Diagnostic, World Bank Group, 2018

2 FinMark Trust was established in March 2002 with initial funding from the UK’s Department for
International Development (DFID). FinMark Trust is an independent trust whose purpose is ‘Making
financial markets work for the poor, by promoting financial inclusion and regional financial integration’.
In pursuit of its goal of improving the livelihoods of the poor through the usage of financial products
and services, FinMark Trust recognises the complementary role of governments (as policymakers and
regulators) and the private sector (as service providers) and believes that the availability of credible
financial sector information enables effective, evidence-based dialogue amongst financial sector role
players, and that this will facilitate the development of effective interventions that are essential for
sustainable financial market development.
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– enabling them to extend their reach and broaden the range of services they
provide. FinScope surveys have been conducted in 24 African countries and 10
beyond the African continent. Currently FinScope surveys are being implemented
in Botswana, Nigeria, South Africa (both small busines and consumer survey)
and Sudan.
The FinScope survey provides a holistic understanding of how individuals

generate an income and how they manage their financial lives. It identifies the
factors that drive financial behaviour and those that prevent individuals from
using financial products and services. Implementing the FinScope survey over
time further provides the opportunity to assess whether, and how, a country’s
situation changes.
FinScope Rwanda
The first implementation of the FinScope survey Rwanda in 2008 was driven by
a lack of credible information to guide policy interventions and financial service
providers in their efforts to expand the reach and depth of the Rwandan financial
system. This decision to implement FinScope Rwanda 2008 was urged by the
BNR as the overall custodian of Rwanda’s financial sector.
In pursuit of their objective of removing systemic barriers to uptake of financial

services, Access to Finance Rwanda3 (AFR) needed to obtain information about
how the landscape of access to, and usage of, financial services has changed
since 2008. AFR therefore commissioned a follow-up survey in 2012 and 2016.
In partnership the with Government of Rwanda, AFR initiated the fourth FinScope
survey with an intention to continue measuring progress in the financial inclusion.
FinScope 2020 is expected to illustrate how many adults Rwandan were linked
to financial inclusion specifically formal accounts through different sector
interventions.
FinScope Rwanda 2020
After a competitive tender process, the Centre for Economic and Social Studies
(CESS) was selected to conduct the FinScope Rwanda 2020 survey under the
supervision of the steering committee members and with technical support
from FinMark Trust (FMT).
The main objective of the FinScope Rwanda 2020 survey was to:
• Describe the levels of financial inclusion (i.e. levels of access to financial
3 AFR was launched in March 2010 at the request the Government of Rwanda and with support from DFID
and the World Bank. The core objective of AFR is to remove systemic barriers to financial services by putting
the poor at the centre of its interventions.
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products and services – both formal and informal)
• Describe the landscape of access (i.e. the type of products and services used
by financially included individuals)
• Identify the drivers of, and barriers to, financial access
• Assess trends/changes over time (from 2016)
• Stimulate evidence-based dialogue that will lead to effective public and private
sector interventions in order to increase and deepen financial inclusion
• Provide information on new opportunities for increased financial inclusion
and the extent to which financial services are meeting Rwandans’ needs.
Survey and instrument design
Like the FinScope Rwanda 2016 survey, the current wave (FinScope 2020) was
expanded (with reporting domains at national, regional, urban/rural and districts
levels) to allow for greater data interrogation:
1. Respondent profile
• Universe: adult population in Rwanda
• Rwandan residents 16 years and older
2. Coverage and methodology
• Fieldwork conducted September 2019 to November 2019
• Computer Aided Personal Interviews (CAPI) conducted face-to-face
• Questionnaire reviews included reordering of some questions and the addition
of new questions based on feedback from stakeholders
• Questionnaire in Kinyarwanda and translated into English
• Total of 12 480 interviews conducted
3. Sample and fieldwork validation
• Nationally representative sample
• Sample drawn systematically using Probability Proportional to
Size (PPS) sampling
• Enumerator Area (Villages)-based, 780 Villages (up from 615 villages in 2012)
and 16 interviews per Village were conducted
• Comprehensive Listing in 780 villages – listing 158 386 households
• To identify respondents, two further levels of random sampling:
» Households randomly selected within each sampled village
» Individual respondents randomly selected from sampled households using
the automated Kish grid
• The data was weighted and benchmarked to the 2016/17 Integrated
Household Survey (EICV5)
• The FinScope Rwanda 2020 survey findings were validated and
approved by the NISR
• Data analysis was conducted by the members of the steering committee
and FinMark Trust
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SOCIO-ECONOMIC PROFILE
This section presents the FinScope results on the socio-economic status of

Rwanda. The estimated adult population (16 years and older) was 7 131654
Figure 1: Provincial distribution
Uganda
Eastern province
23%
NORTHERN Kigali city
PROVINCE
22%
EASTERN Southern province
PROVINCE
WESTERN KIGALI 21%
PROVINCE
Western province
20%
SOUTHERN Northern province
PROVINCE 15%
Tanzania
Burundi
with the smallest population of adults being in the Northern Province and the
largest population in the Eastern Province. Other FinScope Rwanda facts include:
• The Rwandan adult population is largely rural based, with 74% (5.3million)
residing in rural areas
• 30% are young adults aged between 16 to 30 years
• The gender distribution of the adult population is skewed in favour
of females (56%)
• A slight decline in the proportion of adults with no formal education or those
who have attained some primary school education. 19% (from 21% in 2016)
of adults have no formal education and about 52% (54% in 2016) have
achieved some level of primary school education but with no secondary school
education. Encouragingly, the proportion of adults with tertiary education has
risen from 2% in 2016 to 6% in 2020
• The percentage of adults with access to piped water in their homes or yards or
access to electricity that could be used for cooking and lighting purposes has
increased, although the majority still have limited access. Fetching drinking
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water and firewood for cooking purposes is a daily reality in these households
• 80% of adults are from households that are involved in farming activities
• Approximately 42% of the adults in Rwanda generate an income from farming
activities and 12% from farm work wages; 34% earn an income from piece
work. This makes farming and piece work leading sources of income (these
livelihoods are often related to irregular and low levels of income)
• 44% of adults have more than one source of income
• About 10% of adults generate an income from government institutions and
private businesses/companies (5% mention per source)
• 11% of adults are self-employed, meaning that they own businesses. 36% of
them employ 1.2 million people thus creating 2 million employment including
0.8 million owners
Figure 2: Urban-rural distribution (%) Figure 3: Gender distribution(%)
26% URBAN
MALE
56% 44%
FEMALE
74%
RURAL
Figure 4: Age distribution (%) 26%

23%
19%
16%
13%
4%
16—17 18—30 31—40 41—50 51—60 61+
14
• The Ubudehe programme categorises Rwandan households into 4 categories
according to the socio-economic status of the household, with Category 4
households being the most affluent, and households in Category 1 the least.
Based on their self-reported Ubudehe status, only 14% of adults are from
households that fall into Category 1 (these are families who do not own a
house and can hardly afford basic needs). 41% reported that they are from
households that fall into Category 2 meaning that they are families who have
a dwelling of their own or are able to rent one but rarely get full time jobs.
Figure 5: Levels of Education distribution (%)
No formal education
19%
Primary education
52%
EDUCATION (%)
Secondary education
22%
Vocational education
1%
Tertiary
6%
Figure 6: Source of Income distribution (%)
SOURCE OF INCOME (%)
42% 34% 12% 11% 5% 5% 4%
Farming Piece work Salary/ Self-employed Salary from Salary from Salary/
wages from (have own Government private wages from
a farmer business) institution business an individual
15
Figure 7: Size, scope & challenges of business owners
64%
Employing 1.2 million people
0.8 million
MSME owners 511,369
individual
entrepreneurs
36%
Creating about 2 million jobs
292,011 including owners
business-owners
with employees
16
17
MONEY MANAGEMENT
Knowledge about financial products
As financial products and services are always in constant evolution, it is imperative to offer
financial education among adults. The knowledge level of adults regarding financial products
significantly influences their decisions. Encouragingly, adult Rwandans display high levels of
knowledge for financial products with the most known products being U_SACCO and savings
account with a bank.
U_SACCOs 89%
Saving account with a bank 82%
Medical insurance 77%
Mobile money 72%
Loan account from a bank 64%
MFIs 56%
Bank card 43%
Life insurance 43%
Credit card/bank card 40%
Women banking account 38%
Agriculture insurance 32% Figure 8: % of adults with
Third party insurance 32% knowledge of financial products
Internet banking 26%
Deposit guarantee fund 12%
Credit reference bureau 9%
Access to infrastructure
Proximity to financial services usually gives an indication of how close services are to the
people, and even highlights areas where geographical access is limited. Urban areas usually
have developed infrastructure that supports the access and availability of financial services.
Figure 9: % of adults taking less

than 30mins to travel to places Urban
Rural
99% 93% 92%
85% 84% 84% 81% 79% 79% 77%
69% 71%
59%
41%
30% 30%
24% 23% 22%
12% 14% 9% 10% 7%
Mobile School Cell Market Health Umurenge Bank Sector Mobile ATM MFI Insurance
money office care SACCO branch office van branch
agent facility
18
From Figure 9, it can be clearly seen that most access these amenities with reduction from
of the adults in the urban areas travel less 46:46 minutes to 38.86 (SACCO); 52:07 to
than 30mins to get to their destinations with 41.16 (MFI); 53:30 to 42.85 (bank branch);
the closest facility to most being the mobile 53:37 to 41:21 (ATM) and 31:00 to 18:78
money agent, school and cell office. For the (mobile money agent).
majority of the Rwandans who live in the rural
areas, only a few take 30mins on average Notable differences amongst the districts
to get to their desired place with the school with Nyarugenge district having lowest
premises and the cell offices being the closest average time to get to financial institutions
ones. The financial service facility closest (see table 3). Adults in Ngororero on average
to most of the rural population are mobile takes more than 50 mins to get to any financial
money agents and only 1 in every 10 adults in institutions. Targeted interventions per district
the rural areas takes on average less than 30 can yield much resulting in more adults being
mins to get to a bank branch or ATM or MFI. financially included. In all districts, adults
The availability of access points determines generally have access to mobile money agents
whether people will have access or not. ranging between 8 minutes to 34 minutes.
There are major differences among the Overall, this suggests that there are no
provinces and districts worth noting as significant infrastructural barriers to access
presented in Tables 2 and 3. Adults living financial service providers. However,
in Kigali are closer to most of the financial improvements can be made to reduce the
services as compared to other provinces. time taken to reach financial access points
Mobile money agencies are conveniently in areas that exhibit longer distances
located in most of the provinces. Overall, there in order to stimulate ease of access to
has been improvement in reducing time to financial institutions.
Table 2: Average time taken to destination (in minutes:seconds) by provinces
Southern Western Northern Eastern National

Destination Kigali City Province Province Province Province average
UMURENGE
SACCO
21:25 45:38 43:55 41:77 43:42 38:86
MFI’S 22:74 48:68 47:18 47:01 47:96 41:16
BANK
BRANCH
22:78 50:20 49:03 48:06 48:25 42:85
ATM 22:06 49:23 48:68 49:86 47:67 41:21
MOBILE
MONEY 8:96 23:62 23:76 22:36 17:49 18:78
AGENT
19
Table 3: Average time taken to destination (in minutes:seconds) by districts
UMURENGE BANK MOBILE

SACCO MFI’S BRANCH ATM MONEY AGENT
Nyarugenge 20:34 19:69 19:71 18:81 7:91
Gasabo 21:67 23:73 24:06 23:40 9:34
Kicukiro 20:80 22:22 21:65 20:88 8:70
Nyanza 49:78 51:67 51:97 52:80 26:84
Gisagara 47:83 49:68 49:74 49:53 23:87
Nyaruguru 43:82 52:21 54:34 53:13 29:31
Huye 45:06 48:75 49:46 48:67 23:29
Nyamagabe 49:68 50:63 52:42 48:94 29:17
Ruhango 45:79 44:05 48:07 45:81 23:17
Muhanga 40:61 47:26 49:07 48:96 17:18
Kamonyi 41:82 47:56 48:24 47:51 19:49
Karongi 49:52 52:49 52:93 53:66 33:88
Rutsiro 46:65 52:44 55:65 54:78 25:25
Rubavu 34:78 38:54 40:55 41:60 13:71
Nyabihu 40:70 45:56 47:40 47:83 19:75
Ngororero 50:91 55:84 56:51 56:48 28:96
Rusizi 36:92 38:63 40:82 40:18 21:20
Nyamasheke 50:23 52:91 55:09 55:18 27:03
Rulindo 40:91 46:45 47:33 49:33 20:21
Gakenke 42:49 51:27 51:77 54:93 26:78
Musanze 34:12 39:69 41:40 42:39 18:95
Burera 45:14 50:00 50:24 52:87 26:73
Gicumbi 46:74 49:08 50:51 51:79 19:40
Rwamagana 45:78 50:64 46:85 47:89 16:51
Nyagatare 39:56 43:64 46:34 43:78 17:93
Gatsibo 44:34 45:82 48:65 47:02 18:82
Kayonza 43:34 48:58 49:06 48:57 15:13
Kirehe 46:48 51:50 52:46 51:79 13:00
Ngoma 48:00 52:64 51:85 51:63 19:42
Bugesera 39:87 45:85 43:86 44:90 20:86
20
Risk and coping mechanisms and unforeseen events as shown in Figure 11.
Almost half of the adults (47%) witnessed the
Unforeseen events pose a significant amount illness of a household member with the least
of strain on households especially if it is not adults having had loss of household goods
covered. This has direct financial and non- (1%). Amongst other top risks experienced
financial implications on the quality of one’s were death of a relative/ household member
life. Beyond Rwandans’ ability to meet day- (10%), agriculture crop/livestock destroyed
to-day needs, a financially healthy nation (8%) and huge price increases (7%). A
should be prepared for the unexpected (that is further split by province reveals that adults
financial shock or emergency). Approximately in the Western province experienced slightly
3 in every 5 adults claimed to have experienced more unanticipated events (65%), followed
a shock that affected their income in the by adults from the Southern province (63%),
past 12 months prior to the FinScope survey. Eastern province and Kigali (60%), with the
Furthermore, slightly more women (63%) least affected being Northern province (58%).
experienced financial shocks as compared
their male counterparts (59%). As most households faced unforeseen events
such as illness in their households or an
Adults experience different types of risks increase in commodity prices due to inflation,
Figure 10: % of adults who experienced it was important for the study to explore what
unforeseen events mechanisms they used to alleviate these risks
or hardships. The main mechanisms used to
cope such events for most Rwandans were to
borrow money from family, friends and other
sources or sell assets or livestock. Some of the
adult Rwandans also resort to doing nothing
39% 41% 37% NO
about the situation, this reflect the hard times
adults usually face. There is need to educate
people about saving for rainy days in order
to mitigate these risks when they do happen.
Additionally, apart from adults using non-

financial devices such as cutting down
61% 59% 63% YES expenses, and doing nothing, about 40%
used financial devices such as savings, and
insurance to mitigate financial shock. Usually
after an unforeseen event happens, some
adults may quickly recover from the aftermath
whilst others may not fully recover. Of those
Total Male Female
who responded to recovery indicator, only
44% agreed that they recovered from the
financial shock.
21
Figure 11: Risk or hardship experienced in the past 12 months
Serious illness of a household member 47%

Death of a relative/household member 10%
Agricultural crop/livestock destroyed 8%
Price increases 7%
Theft of agricultural crop/livestock 4%
Member of household lost job/income 4%
Disability due to accident/illness 3%
Failure of business 3% FINANCIAL SHOCKS
Theft of household property 3% EXPERIENCED (%)
Recession/bad economy 2%
Loss of an asset/dwelling/land 2%
Theft of business stock/goods 2%
Loss of household goods 1%
Other 4%
Table 4: Main risk or hardship experienced in the U_SACCOs

past 12 months and coping mechanism Saving account with a bank
Medical insurance
Mobile money SOLD
EVENT- Loan account from a bankSOMETHING
COPING CUT DOWN USED BORROWED CLAIMED MFIs TO GET DID
MECHANISMS EXPENSES SAVINGS MONEY INSURANCE
Bank card MONEY NOTHING
Rise in prices Life insurance
of goods and 16% 12% Credit card/bank
28% 1% card 12% 17%
services Women banking account
Illness within Agriculture insurance
your household Third party insurance
or family that 12% 12% 32% 1%banking 21%
Internet 12%
requires medical Deposit guarantee fund
expenses Credit reference bureau
Loss to
agriculture or 11% 8% 30% 0% 11% 25%
livestock
Death of a
householder or
family member
7% 12% 33% 1% 22% 11%
resulting in
unexpected
costs for you
22
23
FINANCIAL INCLUSION FRAMEWORK • Formally served: Individuals who have or
use products or services from financial
Financial inclusion: The concept “financial institutions that are regulated through an
inclusion” is core to the FinScope methodology. Act of law (formal financial institutions).
Based on financial product usage, the bankable • Informally served: Individuals who
population is firstly segmented into two groups: have or use products or services from
the ‘financially excluded’ and the ‘financially financial institutions that are not regulated
included’: (informal financial institutions and
Financially excluded: Individuals who manage mechanisms) and/or use community-
their financial lives without the use of any based organisations/mechanisms to save
financial products or mechanisms external to or borrow money.
their personal relationships. If they borrow, • Those individuals who have or use both
they rely on family/friends; and if they save, formal and informal products and services.
they save at home.
Financially included: Individuals who have/ The formally served population can further be
use formal and/or informal financial products segmented into:
and mechanisms. Note: That does not mean • Banked: Individuals who have or use
that these individuals have the products in products or services from licensed
their name. They could also, for example, use commercial banks that are regulated by
someone else’s bank account or be covered by the central/reserve bank.
some else’s insurance. That includes: • Served by other formal financial institutions
Figure 12: Financial inclusion framework
Total adult population 16 years and older in Rwanda
FINANCIALLY INCLUDED FINANCIALLY EXCLUDED

have/use financial products and/or do not have/use any financial products and/or
services – formal and/or informal services - formal and/or informal
FORMALLY SERVED INFORMALLY SERVED

have/use formal financial products and/or have/use financial products and/or
services provided by a formal financial services which are not regulated.
institution (bank/non-bank). A formal financial These operate without legal
institution is governed by a legal precedent of any governance that would be recognised,
kind and bound by legally recognised rules e.g. tontine or moneylenders
SERVED BY OTHER FORMAL (NON-BANK)

BANKED FINANCIAL INSTITUTIONS
have/use financial products/ have/use financial products/services provided by
services provided by a bank regulated non-bank financial institutions, e.g. mobile
regulated by the Central Bank money, SACCO, insurance products, MFIs and
pension providers
24
(non-bank): Those individuals who have The level of financial exclusion has dropped
or use products or services from financial by 4 percentage points:
institutions that are regulated through Acts • In 2020, 7% (0.5 million) adults are excluded
of law but which are not commercial banks. down from 11% (0.7 million) in 2016. About
• Those individuals who have or use products 93% (6.5 million) of Rwandan adults
or services from both commercial banks and have or use formal or informal financial
other formal financial institutions. products or mechanism
Important to note is the fact that there are The reduction in exclusion was caused by a
overlaps in product uptake as one sector might significant increase in the proportion of adults
not fulfil all needs, e.g. a person might have a who are formally served (i.e. who have or use
bank account, an insurance product, and be a product or service from a formal financial
part of a community savings group. Possible institution):
overlaps are illustrated below. • In 2016, 26% of adults were having/using
bank products/services; this proportion
FinScope tools: Main analytical tools used here increased to 36% in 2020. The increase
include the Overview, Financial Access Strand was mainly due to new banking channels
and the Landscape of Access. entering the market resulting in increased
outreach of existing banks
• The uptake of non-bank channel/ services
LEVELS OF FINANCIAL increased from 65% in 2016 to 75% in
INCLUSION IN RWANDA 2020. The increase was caused by an
uptake of products offered by non-bank
formal financial institutions (such as
Mobile money, Umurenge SACCOs and
Figure 13: Overview of financial products/services insurance companies)
uptake by years (%)
Despite the increase in the uptake of formal
financial products, many Rwandans still use
2020
informal mechanisms to manage their money:
2016
• Informal inclusion increased from 72% in
Banked 2016 to 78% in 2020
36% • 81% of individuals who have formal financial
26% products also use informal mechanisms (up
Other formal from 76% in 2016)
(non-bank)
75% Drivers of banking sector
65%
Informal High uptake and usage of banking products
78% has also led to formal financial inclusion. The
72% growth in the banking products or services
Excluded was driven by both savings account and as
7% well transactional products including credit
11% facility products such as credit and overdraft.
25
Figure 14: What drives banking?
Current/cheque 61%
account* 72%
Savings account 60%
at a bank 48%
46%
ATM/debit card 26%
Mobile banking 40%
(M-Banking) 22%
Internet banking 32%
2%
Credit from a bank 29%
(loan from a bank) 13% 2020
2016
Bank USSD codes 24%
Fixed deposit
13% * Please note there has been an
account
increase in absolute numbers from
Overdraft 9% 594 000 in 2016 to 1 045 875 in 2020
facilities 2%
7%
Credit card 1%
Drivers of other formal (non-bank) products/services
The increase in the formal financial inclusion was caused by:

• Rise in uptake of mobile money (4.4 million adults use mobile money
account in 2020 from 2.3 million in 2016)
• Slight increase in the uptake of Umurenge SACCOs (2.4 million adults
have Umurenge SACCO accounts from 2.0 million in 2016)
• More people being insured. About 1.2 million adults in Rwanda had any
type of insurance from 0.5 million in 2016
• More MFI accounts opened. About 0.7 million have MFI account (up
from 0.3 million in 2016)
Figure 15: What drives other formal (non-bank)?
Mobile money 80%

60%
Umurenge 48%
SACCO 52%
Insurance 23%
13% 2020
MFI
13% 2016
8%
NDFI 1%
26
Drivers of informal mechanism
About 5.6 million or 78% adults use informal mechanism to manage their finances.
This uptake is driven by informal savings groups:
• 4.2 million adults in Rwanda reported that they use informal groups such as
Village Savings Loan Association:
» 3.9 million adults save through savings group
» 2.8 million borrow money from these savings groups (overlaps possible)
• 2.3 million adults used credit shop (i.e. took goods in advance from the shop
and paid back later)
Figure 16: What drives informal mechanism uptake? (%)
Savings 82%
group 79%
Shop 42% 2020
credit 47% 2016
Overlaps in product usage Figure 17: Overlaps

2016
Figure 17 displays that consumers generally
use a combination of financial products Other
and services to meet their financial needs. Banked formal
6%
Someone could for example be banked, 1% (non-bank)
and receive his/her salary through a bank 17% 9%
account, but could also belong to a savings 2% 33%
group to enable him/her to get quick access
to money in times of an emergency such
Informal only
as unforeseen medical expenses or to 21%
11%
pay school fees or using mobile money to Excluded
remit money.
2020
Comparisons between 2016 and 2020 reveal
Other
a shift mainly caused by increased uptake Banked formal
8%
in both formal and informal products. The 0.5% (non-bank)
uptake is mainly driven by usage of bank 26% 6%
services, mobile money and savings group.
1.6% 35%
• Only 0.5% (38,786) of adults rely
exclusively on banking services, down Informal only
16% 7%
from about 60,627 adults in 2016; Excluded
• 63% use a combination of formal and
27
informal mechanisms to manage their not formally served – i.e. % of adults who
financial needs (up from 52% 2016), thus are informally served only
indicating that their needs are not fully • % of adults that are financially excluded.
met by the formal sector alone, but also
indicating the fact that those who were Access Strand summary
served only by informal mechanism are now
able to use formal financial product; • The percentage of banked adults increased
• 16% (1.1 million) of the adult population from 26% in 2016 to 36% in 2020. This is
ONLY rely on informal mechanisms such driven by people who opened bank account
as Village for savings and loans, down from in their name. About 38% new bank account
21% in 2020 – therefore vulnerability of were opened in the past 4 years. Around
relying exclusively on informal mechanism 1.6 million or 22% have bank account in
is being reduced. their own name, while further 14% or a
million adults indirectly use bank account
FinScope Access Strand either through using banking channels or
somebody else’s account, but they do not
The FinScope Access Strand is a key indicator have a bank account in their own name.
in determining and segmenting financial • The percentage of adults who are formally
inclusion. It is constructed based on the served, although not banked, slightly
premise that the goal of financial inclusion decreased from 42% in 2016 to 41% in 2020.
initiatives is formal financial inclusion. It is • The proportion of adults using only informal
therefore constructed to illustrate the: products declined to 16% from 21% in 2016.
• Financially excluded adult Rwandans are
• % of adults who are banked – i.e. % of adults approximately 0.5 million, a decline from
who are served by commercial banks 11% in 2016 to 7% in 2020. These adults
• % of adults who are formally served but not neither use formal nor informal products.
banked – i.e. % of adults who are served by • As shown in Figure 19 and 20, the rural-
nonbank formal financial institutions but not urban gap of adults who are financially
by commercial banks excluded remains the same at -7% in
• % of adults who are financially served but 2020. About 91% of the rural population
Figure 18: Rwanda Access Strand (%)
22% 14% 41% 16% 7%

2020
12% 14% 42% 21% 11%
2016
Banked Banked (OTC) Other formal (non-bank) Informal only Excluded
58% 31% 6% 5%
28 Urban
20% 44% 24% 12%
Rural
are financially included compared to 98% of 87% financially included women in 2016
the urban population. The formal inclusion (versus 91% males).
in the urban areas is largely driven by the • There are still differences in the type of
high uptake of banking
22% services14whilst
% in access41women
% and men have, 16% men are
7%
the2020
rural areas its mostly driven by SACCOs more likely to use formal financial services
12%
and mobile money. 14% 42compared
%
21% a -7% gender
to women, creating 11%
• The2016
gender gap continues to narrow down gap in access and uptake of formal financial
in 2020 with 92% of women financially services/products.
Banked
included (versus 93%Banked (OTC)compared
males) Othertoformal (non-bank)
• Figure 25 showsInformal
thatonly
mobile Excluded
money
Figure 19: Access Strand by area type – 2016 (%)
58% 31% 6% 5%
Urban
20% 44% 24% 12%
Rural
Figure 20: Access Strand by area type – 2020 (%)
73% 22% 3% 2%
Urban
23% 48% 20% 9%
Rural
Banked Other formal (non-bank) Informal only Excluded
Figure 21: Access Strand by gender – 2016 (%)
29% 45% 17% 9%

Male
24% 39% 24% 13%
Female
Figure 22: Access Strand by gender – 2020 (%)
39% 42% 12% 7%

Male
34% 40% 19% 8%
Female
29
and Umurenge SACCOs played a more • As displayed in Figure 26, high uptake
significant role in pushing out the boundaries of formal products or services is driving
of formal financial access for adults receiving inclusion among all age groups with the
livelihoods from farming and informal sector. mobile money pushing out the boundaries
• However, there are disparities and levers that for the 16-24 year olds and 25- 30 year olds.
should act to enable a broader inclusion of • Young adults between the ages of 16 –
the population: 24 years remain are more likely to be
» Informal economy unbanked and excluded.
» Dependents from other people (mainly
youth between age of 16 – 24 years
» Incoming from farming
Figure 23: Access Strand by Ubudehe category4 2016 (%)
57% 26% 13% 4%

Category 4
38% 40% 15% 7%
Category 3
22% 45% 22% 11%
Category 2
13% 37% 27% 23%
Category 1
Figure 24: Access Strand by Ubudehe category 2020 (%)
98% 2%
Category 4*
46% 37% 12% 5%
Category 3
28% 45% 19% 8%
Category 2
25% 43% 20% 12%
Category 1
*Kindly note that the banked population figures for category 4 (from 57% in 2016 to 98% in 2020) are not
stable due to small sub-sample sizes.
Formal sector 92% 7% 1%

4. The Ubudehe classification was launched in 2001 to classify people in 6 categories according to their wealth. It was
reduced to 4 categories in 2013.
Government grants/pension
30 85% 8% 3% 4%
Figure 25: Access Strand by main income generation activity (%)
Formal sector 92% 7% 1%
Government grants/pension 85% 8% 3% 4%
Self employed 68% 28% 2% 2%
Money from other people 35% 34% 8% 24%
Informal sector 25% 45% 21% 9%
Farming activities 24% 52% 17% 7%
Figure 26: Access Strand by age group
28% 40% 14% 18%

16-24
year olds
35% 46% 14% 5%
25-30
year olds
37% 43% 16% 4%
31-45
year olds
43% 44% 14% 3%
46-55
year olds
36% 37% 20% 8%
56 years
& above
31
Comparing Rwandan access strand to other countries where FinScope surveys have been
conducted (Figure 27) show that:
• Rwanda is in position 3 when the countries are ranked by financially included adult population
Access strand through the districts’ lenses (Figure 28 and 29) shows that:
• Gasabo,Nyarugenge and Kicukiro districts have highest uptake of banking services.

• Mobile money and U_SACCOs driving formal financial inclusion in most of the districts
especially Nyabihu, Ngoma and Kirehe.
• Gatsibo, Rusizi and Karongi districts have high levels of financial exclusion
• Three districts (Nyamagabe, Burera, Gisagara) have high number of adults who rely exclusively
on informal mechanism
Figure 27: % Comparison of the Rwandan Access Strand with that of other countries where FinScope surveys
have been conducted – ranked by financially included
94% 1%2% 3%
1 Seychelles 2017
81%
10 %
2% 7%
2 South Africa 2019
36% 41% 16% 7%
3 Rwanda 2020
85% 3% 2% 10%
4 Mauritius 2014
40 %
43%
6% 11%
5 Kenya 2019
52% 33% 2% 13%
6 Swaziland 2018
38% 23% 20% 19%
7 Lesotho 2011
11% 42% 26% 21%
8 Uganda 2018
68 %
5
%
5%
22%
9 Namibia 2017
30% 39% 8% 23%
10 Zimbabwe 2014
50% 18% 8% 24%
11 Botswana 2014
13% 49% 7% 31%
12 Tanzania 2017
40 %
9 %
15
%
37%
13 Nigeria 2018
25% 13% 21% 41%
14 Zambia 2015
34% 7% 15% 44%
15 Ghana 2010
27 %
7
%
15 %
51 %
16 Malawi 2014
12%
24 %
12 %
52%
17 DRC 2014
20% 4% 16% 60%
18 Mozambique 2014
32
Figure 28: Access Strand by districts above national average of 77% adults formally served
80% 19% 1%
Gasabo
78% 20% 2%
Nyarugenge
78% 17% 2% 3%
Kicukiro
36 %
49 %
13%
2%
Rulindo
36% 47% 15% 2%
Nyanza
40 %
43 %
14 %
3%
Ruhango
33% 49% 11% 7%
Kayonza
36 %
45 %
12 %
8%
Rubavu
17% 63% 14% 7%
Nyabihu
24% 56% 13% 7%
Ngoma
32 %
48 %
13%
7%
Rwamagana
32% 47% 16% 5%
Bugesera
27 %
51 %
14 %
9%
Kirehe
Figure 29: Access Strand by districts below national average of 77% adults formally served
Rutsiro 16% 59% 18% 8%

30 %
43 %
18 %
9%
Kamonyi
28% 45% 23% 4%
Huye
28 %
45 %
15 %
12 %
Nyagatare
23 %
50 %
17 %
10%
Muhanga
23 %
47 %
25 %
6%
Musanze
19% 49% 26% 6%
Nyaruguru
21 %
45 %
22 %
13 %
Nyamasheke
26 %
38 %
20
%
17%
Gatsibo
22% 41% 35% 2%
Nyamagabe
16 %
47%
25 %
12 %
Gicumbi
14% 49% 22% 16%
Karongi
15% 47% 24% 14%
Gakenke
21% 40% 22% 17%
Rusizi
15 %
46%
30 %
9%
Gisagara
8% 51% 28% 13%
Ngororero
13 %
43%
31
%
13%
Burera

33
34
TRANSACTIONAL ACCOUNTS the role of the mobile money in terms of
(BANK AND MOBILE MONEY) increasing financial inclusion, especially
in rural areas
Access to a transactional account is a first • About 34% of the adult population do
step towards broader financial inclusion not have access to either a mobile money
since it allows people to store money, and to account and/or bank account
send and receive payments. In this report, • There is a gender gap of -9% in favor
transactional accounts are defined as of men. Females with transactional
those accounts offered by a bank or mobile accounts stood at 62% compared to 71%
money services providers. The underlying of male counterparts.
proposition of a transactional account is to
help account holders manage their money. BANKING ACCOUNT
It enables the account holder to deposit and
withdraw cash, make digital payments to third About 36% (around 2.6 million) adults in
parties and store electronic value. In addition, Rwanda are banked (meaning they have bank
an account often, but not always, supports account in their name or joint account and/
a money management objective by enabling or are using banking channels or services to
users to keep track of money as it moves into manage their finances). The proportion of the
and out of, the account. banked adults varies considerable across the
districts ranges from 80% in Gasabo district
Figure 30: Transaction account strand (Bank & to only 8 % in Ngororero district.
Mobile money accounts)
Table 5 shows an increase in uptake of the
Both mobile money & bank account following products/channels:
(2.1m) • Debit cards
• Current or cheque account
6% 30% • Overdraft
• High uptake of mobile banking and
Mobile internet banking
Bank money
account 30% account
only Bank product usage
only
• Figure 32 shows that more adults are
now transacting on a monthly basis as
68% of bank clients used at least one
Excluded 34%
bank product during the month prior to
the FinScope 2020
• About 30% of adults are using both mobile • An additional 13% used at least one product
money and bank accounts to manage their during the 6 months prior to FinScope 2020
financial needs • 19% of the banked adults have dormant
• It seems that mobile money is used as an account, meaning it was not used in a past
alternative to meet specific needs as it does year prior to FinScope survey- there was a
not substitute bank account ownership decline in the number of dormant accounts
• About one third of adults in Rwanda use • Affordability remains the major hindrance
mobile money accounts only, illustrating to opening a bank account (see Figure 33).
35
Figure 31: Proportion of adult population that are banked by districts (%)
Gasabo 80%
Nyarugenge 78%
Kicukiro 78%
Ruhango 40%
Nyanza 36%
Rulindo 36%
Rubavu 36%
Kayonza 33%
Rwamagana 32%
Bugesera 32%
Kamonyi 30%
Huye 28%
Nyagatare 28%
Kirehe 27%
Gatsibo 26%
Ngoma 24%
Muhanga 23%
Musanze 23%
Nyamagabe 22%
Nyamasheke 21%
Rusizi 21%
Nyaruguru 19%
Nyabihu 17%
Gicumbi 16%
Rutsiro 16%
Gisagara 15%
Gakenke 15%
Karongi 14%
Burera 13%
Ngororero 8%
Table 5: Bank Products

2016 2020 GROWTH
Banked population 1 464 541 2 579 942 1 115 401
Savings account 744 574 1 039 934 295 360
Loan with a bank 219 708 494 529 274 821
An ATM/Debit card 207 563 799 771 592 208
Credit card 5 283 127 097 121 814
Current or cheque account 588 200 1 045 875 457 675
Overdraft 12 833 494 529 481 696
Mobile banking 180 493 692 159 511 666
Internet banking 15 316 550 630 535 314
36
Figure 32: Bank product usage (%)
68% 13% 19%

2020
52% 25% 23%
2016
Monthly transactions Mailbox Dormant
Figure 33: Barriers to opening a bank account (%)
90% 6% 2% 1% 1% 1%
Affordability Do not need Access No identification No product Other

the product documents knowledge
Figure 34: Mobile money uses (%)
21% 2% 38% 40%
Broader Mostly Remittances ONLY Not using mobile money

usage air time
Figure 35: Barriers to opening a mobile money account (%)
48% 31% 7% 2% 1% 10%
No product Do not need Afforadbility No identification Access Other

knowledge the product documents
(do not make any
transactions)
Figure 36:
81%
Digital payments
56%
Digital
payment in 30%
the past
12 months: 70% YES
NO
Bank Mobile Money
account account
37
Mobile money penetration digital finance providers, governments and
the economy; notwithstanding a number of
When considering what drives the usage of issues still persist which, if addressed, can
mobile money accounts it is important to do make digital finance work better for individuals,
this by looking through the consumer lens, businesses and governments. The digital
as we seek to understand what the triggers, finance issues discussed in this section are
drivers and barriers to unlock usage are. About relevant for the on-going debate and country-
87% of adults in Rwanda have access to a cell level projects directed at greater financial
phone with females (84%) having slightly less inclusion via digital finance in developing and
access compared to their male counterparts emerging economies.
(90%). About 3 in every 5 (60%) adults (see
Figure 34) use mobile money. • Approximately 30% (2.1 million) of
Rwandans transacted or made digital
• Amongst the services available to the users payments in the past 12 months prior to
of mobile money are money transfers, airtime the survey up from 18% (1.1 million) in
purchases and bills payments. Only 23% of 2016. More people transacted through bank
the Rwandan adult population use the mobile accounts (see Figure 36)
money to pay for services including buying • Third party payments and those who
airtime, saving and to borrow money receive their income digitally are the main
• About 2.7 million (38%) of mobile money drivers of e-money.
users use it for remittances ONLY
• Figure 35 shows that of those not using Transactional accounts usage
mobile money, the key barrier to uptake
relate to the lack product knowledge • Mobile money account is widely used, 58%
about mobile money. of the users transact 3 or more times on
a monthly basis
Growth in e-money to transact • Though MM is used more frequently,
encouraging digital payments could
Digital finance and financial inclusion have strengthen the impact.
several benefits to users of financial services,
Figure 37: Transactional account usage (%)
Mobile Money
account 58% 23% 17% 3%
High Medium Low Dormant
Bank 31% 37% 13% 19%

account
High = Use the account at least 3 or more time on a monthly basis

Medium = Use the account once or twice monthly
Low = Use the account less often (in the past 60 days to 12 months)
Dormant = not used more than 12 months
38
SAVINGS
Savings are the leading product type and one of the main drivers for financial inclusion for the
entire Rwanda and this is encouraging as savings are the doorway to enabling adults to create
wealth, pay for household furniture and equipment and most importantly, enabling adults to
use savings as collateral for accessing credit.
Figure 38 illustrates that: Figure 38: Savings overall (%)

2020
• 21% of adults save in banks (rise Banked 2016
from 13% in 2016) 21%
13%
• 48% of adults have a formal savings product
from a non-bank (up from 45% in 2012) Other formal (non-bank)
48%
financial institution (this could be savings 45%
form SACCOs, Mobile Money) Informal
• A large proportion (64%) of Rwandans use 64%
other informal savings mechanisms such 56%
as savings groups Save at home
• Only 13% of adults claim to save at home or 13%
35%
with someone in the household recording a
huge decline from 35% in 2016 Excluded
14%
14%
Figure 39: Savings strand (%)
21% 33% 29% 2% 14%

2020
13% 36% 27% 10% 14%
2016
Bank Other formal (non-bank) Informal Save at home Not saving
In constructing this strand, the overlaps in savings product/services usage are removed:
• The percentage of adults not saving remained the same at 14%.

• Only 2% of adults (0.2 million) keep all their savings only at home, i.e. they do not have/use
formal or informal savings products or mechanisms [decreased from 10% in 2016]
• About 29% of individuals rely on informal mechanisms such as savings groups (they might
also save at home, but they do not have/use any formal savings products.
• 33% of Rwandans have/use other formal non-bank savings products (they might also have/
use informal savings mechanisms and/or save at home, but they do not have/use savings
products from a commercial bank).
• More adults (21%) are using bank channels to save up from 13% in 2016. These adults have/
use savings products from a commercial bank (they might also have/use other formal and/
or informal mechanisms, and/or save at home).
39
• There is significant uptake in savings via bank and savings group:
» Drivers for saving remain short-term (63% of those who are saving, mainly save for
living expenses for when times are hard)
• Increase in saving mechanism is driven mainly by bank, and savings groups:
» Bank: 14% in 2016 to 21% in 2020
» Savings groups: 40% in 2016 to 55% in 2020
Figure 40: Sources for savings (%)
Bank saving products

21% 2020
14%
2016
MFI
6%
3%
Mobile money
25%
19%
Pension fund
7%
2%
Umurenge SACCO
26%
21%
Saving groups
55%
40%
Someone in the household
2%
8%
Secret place at home
10%
20%
Figure 41: Drivers for savings (%)
Living expenses for hard times 53%

Education/school 8%
Buy livestock 7%
Building/buying house/land 5%
Medical expenses 5%
Emergencies (excl. medical) 3%
Other 2%
Providing for family after l die 1%
Improving dwelling 1%
Farming expenses 1%
Funeral expenses 1%
Old age 1%
40
CREDIT
The study sought to find out the proportion Figure 42: Credit overall (%)
of adults that borrow money or use credit to
finance capital purchases, daily consumption 2020
or other needs like agricultural inputs. In Banked 2016
8%
Rwanda, 76% of adults have borrowed in the 4%
past 12 months and the credit overall uptake
revealed the following: Other formal (non-bank)
18%
13%
• 8% of adults borrow from the bank (up by
Informal
4 percentage point from 2016) 61%
• 18% of adults have formal credit facilities 61%
from non-bank financial institutions Family & friends
• Credit from the informal groups (such 30%
as savings groups, use shop credit and 32%
moneylenders) remained at 61% Not borrowing
• Slightly fewer adults (30%) claimed to have 23%
borrowed from family and friends. 28%
Figure 43: Credit strand (%)
8% 14% 49% 6% 23%

2020
4% 11% 51% 6% 28%
2016
Bank Other formal (non-bank) Informal Family & friends Not borrowing
In constructing the credit strand, the overlaps in financial products/services usage are removed
• 23% of adults do not borrow

• 6% rely on friends and family only, i.e. they do not have/use any credit products (neither
formal nor informal)
• Slight decline in number of adults who borrowed from the informal groups. 49% rely on
informal mechanisms such as moneylenders (they might also borrow from friends and family,
but they do not have any formal credit products)
• 14% of adults have/use formal non-bank credit products (they might also have/use informal
mechanisms, but they do not have/use credit products from a commercial bank)
• The proportion of those adults who borrowed from the bank has doubled. About 8%
(0.6million) have/use credit/loan products from a commercial bank (they might also have/
use other formal and/or informal mechanisms, or borrow from friends and family).
• Figure 44 shows that there has been a general increase in terms of usage of all sources,
informal mechanism remains the main source of borrowing in Rwanda
41
• It is encouraging to note that Rwandan adults are mainly borrowing for developmental
reasons (credit to invest in the business, farming, education and property)
• Surprisingly of those who have been denied, a large proportion (74%) of adults
have been refused a loan by the savings group (see Figure 45).
Figure 44: Sources for credit and reasons for borrowing (%)
Bank product
8% 2020
4% 2016
MFI
4%
2%
Mobile Money
9%
3%
Umurenge SACCO
9%
5%
Employer
1%
6%
Informal groups
39%
41%
Moneylender
1%
3%
Shop credit
33%
34%
Farmers association
2%
6%
Family and friends
30%
32%
Figure 45: Reasons for borrowing (%)
Business/investments 22%
Education/school fees 16%
Building/improving dwelling 14%
Buying land/dwelling 14%
Emergencies (excl. medical) 12%
Living expenses 8%
Medical expenses 4%
Paying off other debt 3%
Farming expenses 3%
42
Figure 46: % of adults who have been refused a loan
Have been refused a loan by Have been refused a loan by

formal financial institute (%) savings group (%)
NO 80%
NO 26%
YES
20% 74%
YES
Figure 47: Reasons for refusal
22% 16% 15% 10% 8% 28%
Did not have No reason Had too many Did not have Income too Other
security communicated other debts down payment low
/collateral
43
INSURANCE
Risk poses a significant amount of strain on individuals and households especially if it is

not covered. This has direct implications on the quality of one’s life. The study explored
the risks and hardships that people have experienced and which products they have
used in covering such risks. In total, 17% adults in Rwanda have/use insurance products.
• Insurance uptake almost doubled from 507,220 in 2016 to 1,189,164 in 2020

» Main growth is seen in life insurance and household insurance. Main decline is
realised in medical insurance.
• Main barriers to uptake remain affordability and lack of awareness (75% &
21% respectively)
Figure 48: Insurance uptake (%)
17% 83%
2020
9% 91%
2016
Insured Not insured
Figure 49: Drivers for insurance uptake (%)
Medical insurance
41%
66%
Rwanda Social Security Board (CSR/RSSB)
32%
37% 2020
Life insurance 2016
23%
12%
Third party insurance
9%
12%
Private pension
13%
11%
Credit life (insurance linked to a loan)
11%
11%
Household insurance
9%
5%
Agriculture insurance
1%
4%
44
Mutuelle de Sante
Mutuelle de Sante is part of the Government of

Rwanda’s social protection system introduced in
1999. The aim with Mutuelle de Sante was to enable
members to access health care through all public and
private non-profit health centres in Rwanda and to
reduce the financial burden of health care particularly
for the poorer groups of society. Membership is
voluntary and open to all Rwandan residents for a
modest annual payment. Households in the bottom
two Ubudehe categories (i.e. the most vulnerable)
are entitled to have the membership fee waived. The
Mutuelle de Sante system is primarily coordinated at
district and sector level.
FinScope 2020 findings indicated that 88% of adults

were covered by Mutuelle de Sante, up from 77% in 2016.
REMITTANCES
Around 3.2 million (45%) adults in Rwanda

either sent and/or received money from people
living in a different place. The most common
mechanism used to transfer money is through
formal channels. Remittances are supporting the
vulnerable dependents.
• Mobile money is significantly driving the formal

remitting channels. Majority of those who sent
money in the past six months prior to FinScope
survey used mobile money (88%)
• Of those who received money from someone in a
different place used mobile money (87%)
• There are still few who received money in cash or
through a relative or in person
Figure 50: Remittances strand
2% 41% 2% 55%
2020
1% 39% 3% 57%
2016
Bank Other formal (non-bank) Informal Family & friends Not remitting
45
46
FINANCIAL HEALTH can access and use those tools to acquire,
move, and store funds as well as and grow
Financial health is a relatively new term in their assets)
the financial inclusion community, aiming to
provide a model for assessing how well one’s Overall, Rwandans show good signs of financial
daily financial systems enable a person or health in four of the six indicators: that is
household to build resilience to shocks and balancing income and expenses; building and
pursue opportunities and dreams. maintaining reserves; managing existing debts
and using effective range of financial tools to
Financial health indicators include manage financial lives.
Balances income and expenses (success in • About 71% adults in Rwanda have strategies
shaping income and expenditure in order to to balance their income and expenses.
meet daily needs and financial obligations) Strategies Rwandans use include saving
Builds and maintains reserves (this indicator excess cash and borrowing when there is
captures the behaviour of intentionally or an income gap (see Figure 51).
habitually putting away assets, as well as the • Figure 52 shows that around 63% of
magnitude of assets immediately available) adults build and maintain reserves through
Manage existing debts goals (this speaks to saving money and investing in assets
how manageable current formal and informal and businesses.
debt are, and what resources a person can call • Figure 53 shows that amongst the credit
upon through formal and informal sources) active consumers, only 33% showed signs
Plan and prioritise (improving and maintaining of credit stress or over-indebtedness
financial health requires active and intentional • More financially served adults (88%) have
engagement, including activities such as 2 or more financial products portfolio,
planning and prioritisation) allowing them to use effective range of
Recover from financial shocks (how well a financial tools to manage their financial lives
person can leverage financial resources to (see Figure 54).
weather and recover from an economic shock)
Effective range of financial products (the • The financial health indicator however shows
indicator assesses how well an individual some gaps on planning and prioritising (time
Figure 51: Balancing income and expenses (%) Figure 52: Build and maintain reserves (%)
INCOME NON-FINANCIAL
/NOTHING
25%
29%
37% NO
22% 26% 63%

SAVINGS CREDIT YES
47
Figure 53: Managing existing debts (%) Figure 54: Range of financial tools to manage
financial lives
76%
67%
57% Financial product
portfolio
33% 31%
12%
Credit Credit No credit More than Two Only one

active stress/load stress three
Figure 55: Planning and Devices used

prioritizing (%)
NON-
30%
FINANCIAL
49%
INFORMAL
21%
Figure 56: Main goal (%) FORMAL
Buy or build a house/apartment to live in

22%
Start/expand a business
22%
Buy land
15% Nya
Education for self/family
10%
Buy inputs/assets for business/agricultural activities (e.g. tractor, machinery)
8%
Buy/build a house/apartment for renting/re-sale
5%
Move to your own/a better house or apartment
3%
Buy/pay for things for personal use (e.g. vehicle, TV, phone, furniture)
3% Rwa
Pay for a big life event (e.g. wedding, birth of a child) B
1%
Other
10%
N
48
horizon for planning, types of goals, action prepared for the unexpected that is financial
steps towards goals) and recovering from shock or emergency.
financial shocks indicators. • Of the adult population, 61% experienced
• As shown in Figure 56, Rwandans’ goals financial shocks in the past 12 months prior
and aspirations revolved around improving to the FinScope 2020 fieldwork.
economic well-being whether through • Figure 57 reveals that of those who
starting a business, improving shelter, or experienced financial shocks, 47%
investment on education. mentioned serious illness of household
• The steps or devices used towards goals members; 10% agricultural crop/livestock
do not show financial health confidence as destroyed and 10% death of a relative or
majority of adults use informal and non- household member.
financial methods. Minimum usage of • Of those who experience financial shocks,
formal financial devises may suggest that only 40% used financial devices to mitigate
the available formal products do not meet financial shock. Of those responded to
consumers’ needs (see Figure 55). recovery indicator, only 44% agreed that
• A financially healthy nation should be they recovered from the financial shock.
Figure 57: Financial shocks experienced (%)
Serious illness of a household member

47%
Death of a relative/household member
10%
Agricultural crop/livestock destroyed
8%
Price increases
7%
Member of household lost job/income
4%
Theft of agricultural crop/livestock
4%
Theft of household property
3%
Failure of business
3%
Disability due to accident/illness Figure 58: Devices used to cope with shock (%)
3%
Theft of business stock/goods
2%
Loss of an asset/dwelling/land
2% FINANCIAL
Recession/bad economy 40%
SOLUTIONS
2%
Loss of household goods 43%
1%
Other NON-
4% FINANCIAL
17%
DID NOTHING
49
Figure 59: Summary of financial health indicators by target groups
BALANCE BUILD AND FINANCIAL EXPERIENCED

INCOME & MAINTAIN CREDIT PRODUCT PLAN AND FINANCIAL
EXPENSES RESERVES STRESS PORTFOLIO PRIORITIZE SHOCKS
National average 71% 63% 33% 83% 53% 61%
Women 71% 63% 33% 79% 50% 63%
Men 72% 65% 32% 83% 58% 59%
Youth (16-24) 71% 53% 28% 68% 52% 49%
Youth (25-30) 72% 69% 32% 85% 60% 62%
People with
67% 53% 32% 77% 46% 63%
disabilities
Rural population 67% 60% 35% 77% 50% 62%
LANDSCAPE OF ACCESS institutions such as Western Union or

informal mechanisms such as paying taxi
The FinScope Landscape of Access is used or bus drivers a fee to transport remittances,
to gain more insight into the type of financial etc. are included.
products held or used. Landscape of Access
looks at the types of products taken up by The study findings summarised by Figure 60
consumers who are financially included (6.6 revealed that:
million) and describes the percentage of adults
that have/use formal and informal products/ • Rwandan adults who are financially included
mechanisms, including the following: were most likely to have formal savings
products (71%)
• Transactional products/services - current • Transactional products/services have been
accounts, debit cards, credit cards or basic reported by 39%
savings accounts, which could be used for • Remittances (56%)
transactional purposes, etc. • Credit product (28%)
• Savings products/services - Long and • Insurance (22%)
short-term products are included – i.e. basic
savings accounts, fixed deposit accounts,
shares, government and/or utility bonds, EXCLUDED POPULATION
savings with savings groups, etc.
• Credit products/services - Loans from Around 7% (0.5 million) adults including
formal financial institutions and informal those who are between the ages of 16 to 17
credit such as shop credit and credit from years of age do not use any financial products
moneylenders; shops or savings groups, or services (neither formal nor informal) to
etc. are included. manage their financial lives, i.e. they are
• Insurance p roduc t s/se r vice s - financially excluded. If they save, they save at
Risk management products from home, and if they borrow, they rely on friends
formal institutions and family. Gatsibo, Rusizi, and Karongi feature
• Remittance services/mechanisms - the highest levels of financial exclusion (see
remittance services provided by formal Figure 29).
50
Figure 60: Landscape of access –
formally served
Transactional
39%
Savings
Remittances -32% points
56% 71%
-53% points
Insurance Credit
22% 28%
Table 6 gives an overview of the characteristics of adults neither using formal nor
informal mechanisms indicating that financially excluded population is most significantly
skewed towards (vulnerable groups):
• Adults from ubudehe category 1

• Women
• Youth aged 16-17 years and seniors citizens above 60 years
• Never married and widowed (spouses do not appear as barrier to take up
financial products)
• Those who get their income from piece jobs
• Adults without formal education
Table 6: Distribution of excluded adult population TOTAL

POPULATION (%) EXCLUDED (%)
Location
Urban 24 8
Rural 76 92
Gender
Male 44 40
Female 56 60
Age category
16 - 17 years 4 18
18 - 30 years 26 32
31 - 40 years 23 15
41 - 50 years 19 9
51 - 60 years 16 10
Older than 60 years 13 16
51
TOTAL
POPULATION (%) EXCLUDED (%)
Marital status
Never married 22 47
Married 60 33
Living together 5 3
Divorced/Separated 3 5
Widowed 10 12
Physically challenged
Have disability 19 25
Source of income
Salaried 8 0
Wages from farmer 10 8
Money from farming 29 26
Piece work 24 37
Level of education
No formal education 19 32
Primary 1-3 12 17
Primary 4-6 40 36
Secondary 1-3 11 10
Secondary 4-6 11 4
University or other higher education 6 1
Vocational training 1 1
Ubudehe category
Category 1 13 21
Category 2 40 45
Category 3 46 33
Category 4 1 0
CONCLUSIONS AND reaching the 2024 target of 100% financial

OPPORTUNITIES inclusion. There is still room to further
reduce the levels of those who do not have
This summary report intends to provide a bird’s transactional accounts. However, the greatest
eye view of financial inclusion in the whole opportunity would come from ensuring
of Rwanda. By comparing and contrasting financial inclusion that goes beyond access
different districts in the country, the summary and uptake to measure the impact of financial
report enriches one’s understanding of the inclusion and financial health in Rwanda.
challenges and progress of financial inclusion
in Rwanda. The findings of the FinScope Rwanda 2020
survey indicated that the financial landscape
The levels of financial inclusion are relatively in Rwanda continues to change due to sector
high in Rwanda at 93%, narrowing the gap in interventions. Both banking and other formal
52
non-bank sectors recorded significant Potential use case: financial services
growth in the number of financially included providers (FSPs)
population, in line to the population growth
and effort to reduce population who previously • Financial health measurement can be a
relied only on informal financial mechanisms. tool for improving product design and
strategy development.
The informal sector continues to play a • Improve financial health through high-
significant role in financial inclusion and quality and consumer-centric products.
increasing product portfolio choices. Mobile • Use research results/indicator to modify
money continues to be an enabler for financial product suites, improve functionality,
inclusion and it is used by both the banked and or adapt distribution methods, all with
the unbanked population. the ultimate goal of better serving their
existing clients, as well as growing
Priority areas their customer base.
• The priorities of financial inclusion in Potential use case: policymakers

Rwanda continue to ensure that the lives and regulators
of Rwandans are improved. To this end the
following areas could be prioritized in the • Adopt Financial Health framework and
financial inclusion agenda: develop Rwandan’s theory of change which
• Adopt Financial Inclusion 2.0 (FI2.0) and will guide and implement the financial health
embrace a focus towards addressing real framework, which is likely to be of significant
economy needs through better financial interest to policymaking.
solutions. Identify and facilitate the • Use the financial health indicator both to
implementation of the financial interventions gauge the financial health of Rwandans’
that will improve the resilience and population, as well as to track progress
sustainable livelihoods for the target groups in improving it.
(informal sector, women and youth), as well • Focus on thematic analysis using the
as enhance the contribution to the macro- framework/indicator as a tool to identify
economic indicators for the country; targets for tailored policy intervention and
• Develop and expand the roadmaps that will to monitor policy effectiveness.
support the implementation of the emerging • Adopt the financial health framework and
thematic areas within the financial inclusion include it in the NFIS and nationally-demand
agenda. This includes expanding the gender side representative surveys.
and youth financial inclusion pillars within
the NFIS through establishing specific
interventions for implementation as well
as the inclusion of vulnerable groups, e.g.
refugees, and people living with disabilities;
• Emphasize the focus on the financial health
indicators, quality and impact of the financial
services and come up with specific indicators
to monitor these. The use of digital financial
services and economic platforms have the
potential to unlock the opportunities and
contribute positively to financial inclusion.
53
FINSCOPE FOOTPRINT
FinScope surveys allow cross-country

comparisons and sharing of findings which
are key in assisting ongoing growth and
strengthening the development of financial
markets.
Tunisia
Nepal
Pakistan
Egypt India
Myanmar
Laos
Sudan
Burkina Thailand
The Gambia Faso
Cambodia
Nigeria Ethiopia
Benin Cameroon
Uganda
Togo Kenya
Ghana DRC Rwanda
Cote d’Ivoire Burundi
Tanzania
Repeat cycle
Mozambique First cycle
Zambia
Potential first cycle
Zimbabwe Madagascar
Namibia Underway
Botswana
Swaziland
Mauritius
South Lesotho
Africa
For further information about FinScope

Rwanda 2020 please contact Access to
Finance Rwanda (AFR):
Address: Email: Website:

KG 5 Avenue, House #15- Kacyiru. [email protected] http://www.afr.rw/
The road behind the Netherland Embassy. Call Us:
P.O. Box 1599 +(250) 782-507-751
Twitter: Linkedln:
54
@AFRwanda https://www.linkedin.com/mwlite/company/afrwanda

2020 Rwanda Finscope

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2020 Rwanda Finscope

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Financial

This brochure or summary report is prepared

The SC members formed an integral part of

Centre for Economic and Social Studies

Financial inclusion framework 24

Levels of Financial inclusion in Rwanda 25

The FinScope Rwanda survey is a nationally representative demand-side survey

In pursuit of the objective of removing systemic barriers to the uptake of financial

• Describe the levels of financial inclusion (i.e. levels of access to financial

FinScope Rwanda 2020 was designed to encompass a broad range of stakeholders

FinScope Rwanda 2020 is representative at national, urban/rural and district

Other formal (non-bank): Almost 75% (5.3 million individuals) of adults

Informally served: In total, about 78% of adults in Rwanda use informal

Insurance and risk mitigation: In general, the uptake of insurance is low in

Remittances: About 45% (3.2 million individuals) of adults in Rwanda sent

Financial health: Individuals around developing world are striving to improve

Table 1: Financial health score matrix

INDICATORS SCORE GAP/STRENGTH IMPLICATION

Conclusions and recommendations

The level of financial inclusion is relatively high in Rwanda at 93%, narrowing

Potential use case: financial services providers (FSPs)

• Financial health measurement can be a tool for improving product design

Potential use case: policymakers and regulators

• Adopt Financial Health framework and develop Rwandan’s theory of change

It is widely accepted that financial inclusion plays an important role in promoting

The development of the NFIS is a continuation of endeavour by the GoR to afford

Arising through a collaborative stakeholder review processes, the NFIS 2019

The strategy outlines a series of actionable policy objectives to be undertaken

The NFIS comprises the following action items:

1. Resilience and money management for household – This pillar speaks to

2. SME access to finance for investment – Expand productive credit to benefit

5. Responsible finances - The financial capability is of importance in Rwanda,

6. Cross cutting actions - Regular collaboration between the policy makers,

FinScope is a research tool which was developed by FinMark Trust2 to address

It also provides financial service providers with crucial strategic information

1 Agriculture Finance Diagnostic, World Bank Group, 2018

The FinScope survey provides a holistic understanding of how individuals

In pursuit of their objective of removing systemic barriers to uptake of financial

FinScope Rwanda 2020

• Describe the levels of financial inclusion (i.e. levels of access to financial

Survey and instrument design

This section presents the FinScope results on the socio-economic status of

Figure 2: Urban-rural distribution (%) Figure 3: Gender distribution(%)

Figure 4: Age distribution (%) 26%

16—17 18—30 31—40 41—50 51—60 61+

Figure 5: Levels of Education distribution (%)

Figure 6: Source of Income distribution (%)

SOURCE OF INCOME (%)

42% 34% 12% 11% 5% 5% 4%

Knowledge about financial products

Figure 9: % of adults taking less

Table 2: Average time taken to destination (in minutes:seconds) by provinces

Southern Western Northern Eastern National

MFI’S 22:74 48:68 47:18 47:01 47:96 41:16

ATM 22:06 49:23 48:68 49:86 47:67 41:21

UMURENGE BANK MOBILE

Additionally, apart from adults using non-

Serious illness of a household member 47%

Table 4: Main risk or hardship experienced in the U_SACCOs

Figure 12: Financial inclusion framework

Total adult population 16 years and older in Rwanda

FINANCIALLY INCLUDED FINANCIALLY EXCLUDED